Staff turnover is a common problem for all businesses, with 70% reporting that it has a significant negative impact on their finances. The cost of hiring and training new staff to replace those who leave is prohibitive and many companies cannot afford to lose employees.
Data shows that a lost employee can cost a company an average of between 6 and 9 salaries until a new person is found to replace them. This is one of the reasons businesses are in desperate need of an employee retention strategy.
Jobbri shares 5 tips that will improve the professional relationship between you and your subordinates and help you keep them.
Why employee retention is so important
Staff turnover in the UK is close to 15% per year, leading to a range of costs for companies that could be measured in trillions. Why is the cost so high? When employees leave your company, there are several costs that need to be incurred to move on. Here are a few examples:
· Employee replacement costs (recruiting and training new talent)
· Reduced productivity in the familiarisation period for new recruits
· Lost training time for the resigned employee
· Payment of compensation
It is in your best interest to look after your employees and keep them for a long time. Here's how you can do that:
1. Always hire the right people
According to studies conducted across the UK, there is a huge correlation between employee engagement and turnover. Those who feel out of place and under-engaged are 3.3 times more likely to leave their job than those who are highly engaged.
Hiring people who aren't genuinely interested in the position and aren't committed to their work is a huge investment and expense in training, salaries, etc. that doesn't pay off in the end. Companies should make every effort to find the right employees from the start. How do you find top talent in a sea of candidates? Read more in our article.
2. Feedback is the key
Feedback is at the heart of employee-employer communication. It is key to good employee performance, and it's important for employees to receive it, whether it is positive or negative. Most importantly, it should be objective and the criticism - constructive.
Your colleagues need to receive positive feedback fairly often to keep them motivated and strive to achieve the best results. Constructive criticism is also important, especially when there is an urgent problem that needs to be fixed quickly. Try to create a balance that encourages employees to give their best.
3. Creativity should be encouraged
Although many companies claim to put creativity first, they fail to prove it with their actions. Lack of proper policies and goals hinder the creativity of employees and employers, and this can lead to negative consequences.
A clear example of such policies can be found at Google, which offers a program where employees can work on side projects and receive a bonus for doing so.
Here are some examples of how to encourage creativity in the workplace:
· Create an innovation team
This is a team made up of employees with fresh ideas who want to oversee the company's creative projects. By bringing such people together, you will inspire them to work as one and feel like a full part of the company.
· Reward those who deserve it
If you want people to be creative, you have to give them something in return. Why shouldn't that be different rewards? Whether they are monetary or involve new training courses and skills for employees, they will act as a stimulant. Your colleagues' arduous work should be properly appreciated.
· Have fun
Try to create a positive working environment where everyone can be creative and let their imagination run wild. Don't forget to have some fun in the process, as this will help to relax you and put your team in a good mood.
4. Pay attention to personal development
You're probably familiar with the fact that employees want to know if they have a future at your company. Providing room for expression and development over time is directly tied to engaging and retaining top talent. Focus on the personal development of each employee - give them feedback, provide them with tasks that can help them rise up in the hierarchy.
Provide training programs and hold coaching meetings once a month. Invite inspiring individuals from your field to give employees extra incentive to perform well. Communicate with them and find out what their expectations and goals are. Be sure to let them know what development opportunities your company offers so they know you have their back and will support them.
5. Offer a competitive salary
Competitive pay is another factor to pay attention to. Although money isn't always everything, it determines much of your employees' actions. If their hard work is not rewarded properly, they can very easily leave the job.
Do your research on how salaries are going for a particular position on the UK market, then consult specialists in the field and work with them to determine the most optimal salary possible.
Employees are a company's most valuable asset. Without their help, your business could hardly move forward. That's why it's crucial to value your team and create a work environment that motivates people to work for you.
With the help of our five tips on how to keep valuable staff on your team, you'll be able to assess your attitude towards them to date and work towards improving it in the future.
If you're looking for new talent for your team, you'll find it at Jobbri! See what our platform has to offer.